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Naturally Splendid (TSXV:NS,FWB:50N,OTCQB:NSPDF) announced that its wholly owned subsidiary has entered a novation agreement with Full Spectrum Laboratories (FSL) Limited and Boreal Technologies whereby Naturally Splendid USA will assume all rights, title and interest in and to a Restated and Amended License Agreement between FSL and Boreal. The license agreement marks a major milestone for Naturally Splendid, as the agreement will give the company a worldwide license for the use of FSL’s proprietary technology.
As quoted in the press release:
Under the terms of the Novation Agreement, Naturally Splendid USA has agreed to pay $725,000 to Boreal and Naturally Splendid has agreed to issue to Full Spectrum Partners, LLLP (an entity controlled by FSL) such number of common shares of Naturally Splendid equal to $1,025,000 divided by the greater of (i) $0.35, or (ii) a 20% premium above the closing price on closing of the transaction.
On closing of the Novation Agreement, Naturally Splendid USA will be the licensee under the License Agreement. The License Agreement provides that the licensee has a worldwide license to manufacture, commercialize and sell products based on the follow proprietary technology of Full Spectrum:
- (a) on an exclusive basis, (i) the terpene, hemp oil and cannabinoid formulation technology, (ii) the omega formulation technology, (ii) protein formulation technology, (iv) the cannabinoid technology, and (v) the tongkat ali formulations; and
- (b) on a non-exclusive basis, (i) the Supercritical CO2 and plant oil extraction technology, (ii) genetic plant and artificial seed technology, (iii) biosynthesis of cannabinoids, and (iv) microencapsulation of cannabinoid oils.(the “License”)
Naturally Splendid CEO, Craig Goodwin, said:
This transaction is a major milestone for Naturally Splendid. We have positioned Naturally Splendid to capitalize on the continued global growth trend in products and technologies related to cannabis sativa, which includes industrial hemp and marijuana. In this regards, the technologies we have secured under this agreement, allows Naturally Splendid to develop, market and distribute functional foods and ingredients related to oil and protein extraction. As well, there is increasing demand for cannabinoid formulation technology that allows for more measurable, efficacious products as market trends indicate patients are looking for alternative ways to consume their medical marijuana prescriptions other than smoking. To address this growing trend, Naturally Splendid will develop, market and distribute water soluble cannabinoid products and technologies in jurisdictions where these products are legal, beginning with the US market.
Click here to read the Naturally Splendid (TSXV:NS,FWB:50N,OTCQB:NSPDF) press release
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